Ghost broking is the name given to a tactic used by fraudsters who sell fraudulent car insurance by a number of different methods.

They typically carry out the fraud by one of three ways: they will either forge insurance documents, falsify your details to bring the price down or take out a genuine policy, before cancelling it soon after to claim the refund plus your money.

It is a legal obligation to have valid car insurance. If you buy from a fraudster, you risk:

• Points on your driving licence
• Having your vehicle seized and possibly destroyed
• A fixed penalty notice
• Being liable for claims costs if involved in an accident

This is on top of the money you will have lost buying the invalid car insurance and the money you’ll have to spend to then buy a legitimate insurance policy.

Our analysis into ghost broking reports reveals that the most common method ghost brokers will use to make initial contact with people is through social media, particularly Facebook and Instagram. Other contact methods include adverts in newspapers and magazines, cold calls and being introduced, either directly or by friends, family members or work colleagues.

So, please beware of the #ghostbrokers.